Areas of Advice
The Laura Dean Financial Planning Model
The strength and attractiveness of the Laura Dean Financial Solutions business strategy is found in the way it relates to the real needs and aspirations of its clients.
The key components of the approach are:
The recognition that for the mortgage holder the monthly repayment places an unbearable burden on the family that severely restricts cash-flow to the household and limits the ability to adequately provide for the family.
That the release of extra cash through the pay packet as a result of the Laura Dean Strategy has a liberating affect and provides tangible incentive to a long term commitment to the notion and process of wealth creation.
The discipline of participating in a Laura Dean savings plan built around individual circumstances provides immediate benefits and further provides for the prospect of a more secure future, without any real change that would affect the family's existing lifestyle.
The four pillars of the Laura Dean Business Model designed to provide the framework for the long term financial security of its clients are:
- Mortgage Reduction Strategy
- Investment Strategy
- Property Strategy
- Self Managed Super Fund (SMSF)
The first step is to produce increased cash flow by way of the LDFS Mortgage Reduction Program.
The first step normally is to refinance your existing loan. This will ensure you have the correct loan product to maximise the effect of the Laura Dean Strategy and take full advantage of the increased cash flow.
Take for example the typical case of Bob and Anne
Bob & Anne have a mortgage of $300,000 and are paying $1,996 per month with an interest rate of 7% over 30 years. Bob works as an underground miner earning $120,000pa and pays $35,500 tax. Last year he received less than $2,000 as a tax refund. Anne no longer works but would like to have their home paid off as soon as possible. They have two teenage children and would like to provide for their future education expenses, weddings etc. They have very little in the bank and their only investment outside Bob’s super is some BHP shares. Bob earns a good salary but they still can't seem to make a dent in their mortgage.
Bob and Anne adopt a different STRATEGY
Bob refinances and invests in the Laura Dean Strategy. He starts with a $70,000 investment in a blend of forestry investments. The purchase of his investment is funded by a $70,000 loan that is 100% tax deductible so Bob elects to vary his tax immediately. In fact he now stops paying tax till the end of the financial year. This increases Bob’s ‘take home pay’ by the amount of tax he was paying. He now uses that money to make extra payments onto his mortgage. This will significantly reduce the term of his mortgage without affecting his disposable income – his ‘take home pay’.
The second step is to get involved in income producing investments through prudential financial planning.
LDFS is committed to providing clients with a holistic framework to deliver long-term financial stability and security to help make whatever lifestyle they choose to live throughout their working life and in their retirement years, become a reality not just a dream.
Laura Dean Financial Solutions works closely with Financial Planning Services Australia and its administrative platform Netwealth, to provide access for clients to the highest level of investment expertise. Netwealth Investment Wrap has access to 250 Managed Funds from more than 75 local and international managers.
The third step to follow is the Investment Property Strategy
Laura Dean‘s Property Divison – Short Street Holdings Pty Ltd*** provides a fresh, modern and innovative approach to home ownership and investment opportunities.
When Laura Dean Financial Solutions recommend that a client should look to invest in a residential property we know from our information that these properties are built by a reputable builder that we have confidence in, and have the potential to achieve the expected capital growth.
Unlike many other House & Land Packages, each investment property is built ready to live in. These beautifully architect designed homes have been carefully selected for each particular lot reflecting the Australian lifestyle with modern open plan living. The homes are constructed by experienced licensed local builders and are complete with luxury inclusions, smart floor and window coverings, quality kitchen appliances, lighting and smoke detectors.
All Estate sites are selected carefully according to defined demographic criteria. They must be close to schools or universities, hospitals, shopping centres and transport. All homes are completed with attractive landscaping making it perfect for the owner-occupier, investor and tenant alike.
*** Please be aware that any direct property advice and/or services is provided by Laura Deans’ Property Divison – Short Street Holdings Pty Ltd and isseparate to the financial product services provided under FPSA's AFS licence. FPSA is not responsible for services provided by Laura Deans’ Property Divison – Short Street Holdings Pty Ltd.
The Fourth Step Is To Use A Self Managed Super Fund (SMSF)
Because of recent changes to Legislation, it is now possible to buy property using Self Managed Super Funds to diversify portfolio and so gain tax and other financial benefits.
These changes mean that gearing (or borrowing to invest) in Self Managed Super can be an attractive value proposition.
If you have over $150,000 in your current super fund, this strategy maybe of use to you.
Agribusiness
Agri Business investments underpin a majority of the Laura Dean Financial Solutions wealth creation strategies. This investment sector has strong cross party support in Federal Parliament. Agribusiness provides a investment solution for clients looking to minimise tax, clear bad debt and create wealth. At Laura Dean we have aligned ourselves with companies who have outstanding track records, long term supply and land agreements. This provides us with the comfort of knowing where our supply is coming from well into the future.
The Way Ahead
Laura Dean Financial Solutions realises that the financial needs and circumstances of people and households are in a constant state of change, perhaps now more than ever. Life-phase change is a constant but achieving on-going financial stability and security, to have a measure of peace of mind, requires thorough and complex financial planning built on professional competence and trust. In the midst of the Global Financial Crisis this task is enormously more difficult.
Laura Dean Financial Solutions believes that wealth creation during working life needs to be seen in the context of current opportunities and future expectations. To take advantage of current opportunities is to leverage strategies to reduce the stifling burden of debt, including mortgage and credit card.
Retirement planning is a process that has to begin earlier rather than later, to ensure that sufficient funds have been stored away safely to provide a life style that is in line with expectations and opportunities.
Laura Dean Financial Solutions will always strive to advise and assist clients to achieve their financial goals and peace of mind.
As part of the new holistic Financial Services Strategy, Laura Dean Financial Solutions now takes under its wing the many issues that daily confront individuals and families.
Financial Planning is not just about tax minimisation and investment strategies to grow wealth and well-being. It is also about taking care of aspects of living that protect people and their health and wealth, and anticipate needs as they may arise. This includes Life Insurance, Superannuation Planning, Pension Planning, Estate Planning, Selecting the right Mortgage and of course, on-going Investment Planning.
Laura Dean Financial Solutions is all about helping to find financial solutions for you and your family. Together and separately we are Building A Better Life.
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Laura Dean Financial Focus - Issue 2 June 2010
